Rockwell Medical, Inc.( the” Company”)( Nasdaq RMTI), a healthcare company that develops, manufactures, commercializes, and distributes a portfolio of hemodialysis products to dialysis providers worldwide, moment blazoned that the Company amended its loan and security agreement with Innovatus Life lores Lending Fund I, LP(” Innovatus”).
Rockwell Medical and its wholly possessed attachment, Rockwell Transportation, Inc., originally entered into a loan and security agreement with Innovatus on March 16, 2020, under which Innovatus agreed to make certain term loans to the Company, of which the Company drew down roughly $ 21.0 million. On December 31, 2023, the Company’s outstanding balance under those term loans was $ 8.0 million( the” Term Loans”). Under the terms of the third amended and paraphrased loan and security agreement( the” Correction”), Rockwell Medical reduced the interest rate on and extended the loan maturity date for, the Term Loans from March 2025 to January 2029. The Company will make interest-only payments for thirty months, or over to thirty- six months if certain conditions are met. In connection with the prosecution of the Correction, the Company issued Innovatus a leave to buy 191,096 shares of the Company’s common stock with an exercise price of$1.83 per share. The leave is incontinently exercisable through January 2, 2029. ”
Over the once 18 months, we significantly reduced the influence on our business,” said Mark Strobeck, Ph.D., President and CEO of Rockwell Medical.” As we work towards sustained profitability and positive cash inflow, we continue to seek ways to enhance our fiscal stability and our cash balance. Grounded on the amortization schedule under the loan and security agreement previous to the Correction, we’d have been needed to pay off$6.0 million of the outstanding debt in 2024 and$2.0 million in 2025, which would have significantly reduced our cash balance during this period. While the Amendment extends the maturity date of the Term Loans out to January 2029, it offers us a better interest rate and the fiscal inflexibility we need to help ensure the long-term viability and sustainability of our business.” For further details about the Correction, please source the Current Report on Form 8- K filed by the Company on January 8, 2024.
Rockwell Medical primary Fourth Quarter and Full-Time 2023 Projected Results Rockwell Medical projects net deals in the fourth quarter of 2023 to be between$21.3 million and$22.3 million, a 10 to 16 increase over net deals of$19.3 million for the same period in 2022; gross profit for the fourth quarter of 2023 to be between$1.6 million and$2.6 million, analogous to gross profit of$2.3 million for the same period in 2022; and systems that the Company will report acclimated EBITDA between$(0.9) million and$0.1 million in the fourth quarter of 2023. Rockwell Medical is narrowing its full-time 2023 guidance and systems net deals for the twelve months ended December 31, 2023, to be between$82.8 million and$83.8 million, a 14 to 15 increase over net deals of$72.8 million in 2022, and gross profit for the full- time 2023 to be between$7.4 million and$8.4 million, an 80 to 105 increase over gross profit of$4.1 million in 2022. The Company systems acclimated EBITDA for the full-time 2023 to be between (5.5) million and (4.5) million. Rockwell Medical projects cash, cash coequals, and investments available- for trade on December 31, 2023, to be $11.0 million compared to$11.7 million at September 30, 2023. The fourth quarter 2023 and full-time 2023 net deals, gross profit acclimated EBITDA, and December 31, 2023 cash balance included in this release are primary and are thus subject to adaptation. The primary results are grounded on the operation’s original analysis of operations for the quarter and time ended December 31, 2023. The Company expects to report fourth-quarter and full-time 2023 fiscal and functional results in March 2024.
